Suppose that the reserve ratio is 25%. What is the value of the potential money multiplier?
A. 2.5
B. 2
C. 4
D. 5
Answer: C
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Other things the same, if the Fed increases the quantity of money, the ________ because ________
A) nominal interest rate decreases; the supply of money curve shifts rightward B) nominal interest rate increases; the supply of money curve shifts rightward C) nominal interest rate does not change; only the real interest rate is effected D) nominal interest rate decreases; the supply of money curve shifts leftward E) nominal interest rate increases; the supply of money curve shifts leftward
Monetary management in the United States today is under the direction of the
A) Council of Economic Advisers. B) Federal Trade Commission. C) Joint Economic Committee of the Congress. D) Open Market Committee of the Federal Reserve. E) United States Chamber of Commerce.
?When one randomly samples from a population, the total sample variation in xj decreases without bound as the sample size increases.
Answer the following statement true (T) or false (F)
The model yt = yt -1 + et, t = 1, 2, … represents a:
A. AR(2) process. B. MA(1) process. C. random walk process. D. random walk with a drift process.